5 Levels of Wealth AND How to Achieve Them!

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The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW!
We can’t wait to see you accomplish your goals and reach financial freedom! New shows every week on KZbin and your favorite podcast app. Thanks for coming along on the journey with us.

[@Tybward]

Just got a new job making $45000 out of college. 22 years old and excited to start giving each of my dollars a home in the right places. I feel ahead of the game when I see people my age have no interest in finances and wealth building. Cheers!

[@forzared101]

Dude, you are WAAAY ahead of the game. I'm 30 and I wish I had the mindset I have now when I was your age. Keep it up!

[@mkz42279]

Didn't make that money before I was in my 30's. you will do great!

[@trevoresker7090]

I’m 21 and making 40k yearly. Watching this has made me very aware and want to protect my future, I am saving now so I don’t have too longer down the road. Love these guys they’ve helped me learn a lot public education did not.

[@JohnnyD5]

Word of advice: Be careful who you marry.

[@sonderexpeditions]

Congrats! You're already so ahead!

[@AlumniQuad]

2:10 #1 Stability: Above water and basics covered 11:55 Financial order of operations (initial) 13:58 Money Guy rules 17:05 #2 Strategy: Army of dollars has a plan 19:00 How much do Americans save? 25:09 Saving versus investing 29:29 Financial order of operations (continued) 31:53 #3 Security: Not sweating the small stuff 34:19 "How did we get here" behaviors 37:49 Financial order of operations (continued) 42:59 #4 Freedom: Financial independence 49:25 Millionaire Next Door formulas 54:40 #5 Abundance: Money doesn't matter anymore 57:45 Identity, values, and purpose

[@MichaelJMetz]

Thanks for the outline. Saved me time (which means money)

[@mikebayless4268]

Nice work!

[@happylife7542]

Thank you

[@jamesjones4403]

00

[@kgvideo9201]

lig

[@rayspencer7255]

Your biggest financial decision is the choice of your life mate. Choose someone that is mature with money, can support you . If you choose a person who is careless With money, you will always be struggling with money.

[@swcordovaf]

And divorce is a wealth killer beyond me any other bad decision.

[@SammifromMiami]

Young men in their 20s should not make chasing women a priority. Sure, have some fun! But focus on building your career and/or business. When you hit 35 and have been successful financially, women will chase you!

[@marcusgray2799]

Right. Especially if you get someone who's helpless

[@Itsanawfulwasteofspace]

I think this is great advice that easily gets missed. I would also add to get a prenup before marriage as well because divorce is how you lose the biggest wealth.

[@cianlernihan6417]

Great video guys. Myself and my wife are 34 & 33 years of age. We have two children and own our own home. Combined net worth of $145,000 with annual income of $107,000. No debt but our mortgage which has 12 years to go. Healthy emergency fund in place. Personally we stay well clear of credit cards and car loans etc. We are both self-employed. I teach guitar full time (my dream job) and my wife has her own small fashion label (her dream job!). We recently started investing / saving 20-25% of our income for the families future and it feels great! Now we just need to keep on track with what we are doing. Thanks for all the fantastic advice. You are doing so much good. 🤘🎸😎

[@jackjackson7170]

Rock on dude.

[@dacoolist]

What I love most about this show: I get pumped up about my future. Keep up the great work

[@austinalvarezpodcoach]

Man I'm 23 but I am taking control of my life starting today. Working towards buying a house at the end of this year for my family and I and paying off my car and building wealth is the goal

[@austinalvarezpodcoach]

@J Thanks the house ended up not being in the cards for about another year or so, but we were able to get a second car affordably and have made leaps and bounds towards our financial security.

[@makecodgreatagain6049]

@@austinalvarezpodcoachcar debt gone?? I’d love to hear that you’ve been meeting your goals

[@rickypope2253]

I am almost 41. I discovered you guys channel about a month ago. I am very serious about my future and I have starting planning. Hopefully there is some hope

[@bladerun31]

This show needs more subscribers and viewers. Top of the line content. Keep it up!

[@MK-eu3es]

It's my n1 recommendation for all newbies together with one other podcast. And I probably follow around 30 investing channels regularly. Basically top quality content, delivered in a way it is useful for both professionals and new people.

[@MrKijana23]

Word

[@marcusgray2799]

I agree

[@mecheckraise]

I still aggressively reinvest 90% of my income but I think I may start spending a bunch of it soon. I made about 140% return in the stock market in 2019. I am over 50% return in the stock market in 2020. Total percentage yield DOES matter. It has made me a millionaire.

[@mitchandheidi]

Options?

[@mecheckraise]

@@mitchandheidi I buy 3x TECL and 3x TQQQ but do sell PUTs and buy covered CALLs. I do NOT buy PUTs or CALLs since they are just too risky. Selling CALLS when you have the security or selling PUTs to buy a security lower lowers your risk. I was in TECL common when I made the 140% in 2019. I would have made more just buying and holding it though. Look at the long term TQQQ and TECL charts 5 and 10 years.

[@rayspencer7255]

@@mecheckraise Buying Long Calls in Tesla worked well!

[@makecodgreatagain6049]

@@rayspencer7255just about everything has doubled since pandemic lows. You’re right though, my group made thousands of percent ROI within a week just on tesla. One dude went full degen with 12k and turned it into 3.6m by 2021.. haven’t kept up with dude but.. yeah. Edit: looks like 7m was the tip of his iceberg before he started giving some of it back.

[@GarmanH]

These are times when investments has really become the prior task for achieving actual success

[@GarmanH]

I’ve been able to stay ahead on inflation and simultaneously build wealth by investing in the stock market through my financial manager Nigel K. Phineas, he’s been an additional value to my life and financial prowess in general

[@A.g522]

@@GarmanH for a while now i’ve procrastinated on my plans to venture into the stock market do you make your profits investing through this guy?

[@GarmanH]

@@A.g522 Yes I do, I only got acquainted with his investment management service three months ago and so far I’ve grossed around a total profit of $87k. I haven’t always been successful in the trading market not until I got in contract with Mr. Nigel one of the best hedge fund managers in the game

[@GarmanH]

If you might require his services reach out to him via email or telegram; Nigelkphineas@gmailcom Nigelphineas_finance

[@A.g522]

@@GarmanH heard a lot about partnerships like this seems to be quite advantageous,how much do you think nigel phineas accepts for a start?

[@derekp6636]

sigh, 2020 was a big hit but this was a good reminder to get back on track thanks

[@genxx2724]

2020 in itself should have served as a reminder. If you were in shape to weather the storm, it’s time to rebuild to weather the next storm.

[@Mexicobeanpole]

I watch your videos regularly, but somehow missed this one and it came up on my recommended. I’m self employed for 17 years. First it was a side gig. The last 3 years it’s my full income. My business has continued to grow. So has my fear of it all going away. Maybe that’s a good thing, instead of a bad thing. Lol.

[@Rachel-if7eb]

You guys are the best! My fiancé and I watch your videos all the time and we have learned so much that no one ever taught us about savings like the benefits of Roth over traditional 401K and why a 15 year mortgage is not the smartest move. I wish we would have found your channel sooner!

[@momplaygroupfouz4946]

Lololol hate to burst your bubble but theee guys give advice that may not be right for each person. I’m a cfp with 22 years experience and some of what these guys say makes me cringe. It may be right for some but not all. The 15 year mortgage may be very smart for a lot of families. The traditional 401k is right over a Roth 401k for some folks. They give advice for “all” and it doesn’t apply to every person. People are unique and so are their financial situations. You don’t get your medical advice from web md. Don’t rely on these guys for your advice... go to a pro who can address your own circumstances.

[@Rachel-if7eb]

@@momplaygroupfouz4946 Of course every situation is unique but this channel provides good information and options for us to think about and discuss. It’s good to get us thinking about the pros and cons of different investment options from a perspective we hadn’t considered. l hadn’t thought about the opportunity cost of putting more money on our mortgage when the interest rates are crazy low and we are age 30 so investing the difference makes more sense. If I was someone with no self discipline and would just spend the difference between the two mortgages then of course in that situation a 15 year mortgage would make more sense. I understand that no advice can be just blindly applied. Overall I think this channel has been extremely helpful for my fiancé and myself.

[@makecodgreatagain6049]

@@Rachel-if7ebyou don’t need to give someone like this guy your money. Your message was well said. Keep killing it!

[@EmilyLucille523]

We are in our 40’s. Our mortgage is 1.5 times our household income. We have no debt. Have 3 months ER fund. Retirement is only at match but we plan to increase that soon. Was worried but not feeling better already after listening to this video.

[@amuseinthecraftroom6257]

You make me panic less. Great perspectives, wish I would have been better at keeping my mits off my 401 in my 20s. Oh well. Live, learn, and catch up right?

[@slomo1562]

While I'm not 100% sold on some things shared (I view debt as a thief and prefer to avoid it), I am thankful for the information provided and all the hours spent researching, learning, sharing, and putting up each video. Thanks guys.

[@Jrez]

I think the key to debt is learning the difference between how different people use it. The financially-illiterate definitely use debt incorrectly, often to buy things like food and stuff. Being smart with debt means using it to buy things that make money or retain value like property, assets, capital, etc.

[@slomo1562]

@@Jrez so... leveraging debt. I've met more than a few people who, even after getting flipped on their ear, still believe they can make it work. Guess I'm just unsophisticated.

[@Jrez]

@@slomo1562 obviously it isn't foolproof otherwise it probably wouldn't even exist. I'd value an ability to observe reality for what it is more than knowledge of the concept. But debt is just a tool, it can hurt you but it can also get the job done.

[@ddnusbaum12]

Can you provide a top ten financial books to read?

[@michaelswami]

Your discussion of level 5 may be the best content you’ve ever done.

[@jordantrae2280]

I sent a text to my younger siblings (2 college, 1 hs) about the 88x power and have the same stat for my age as the note on my lock screen on my phone. I run an investing/trading group and always try to get members to focus on the investment side. I appreciate the work you do for myself and many others. Happy Holidays.

[@franzvanjulio5523]

Those statistics on the amount people actually save are absolutely startling. You know, I can binge watch your content all day.

[@SVaya2018]

Hey Brian and Bo, great show, thank you!!Have you done a deep dive on doing your annual net worth statement? Just walking us through how it works. If not, could you do one on a Tuesday before the Q&A? Much appreciated gents!!

[@TB-rx1ue]

Me: staying up to watch this past midnight. Love your content.

[@Xyrutano]

Awesome show and I think the introspective and philosophical discussion at the end is great but I think one step further is to connect with your audience and be vulnerable. Open up as to what your purpose in life is, what are you guys waking up to everyday? You guys have so many years of experience looking at this journey through the same lens as your viewers and I think they can benefit from understanding your story of how you came to realize your purpose

[@muhaimennoor796]

Guys your videos are addicting. Keep up the good work.

[@SammifromMiami]

At the 20:20 mark, "...if you can save 20-25%, your older self will become sloppy happy with you." I can attest to that! So glad I put money away years ago. I don't have as much as I 'projected' I would way back when, but the pile still looks good. I tell my kids and anyone younger who will listen (I don't think they listen, lol), "...the future gets here and the math works!"

[@thoryan3057]

What rate of return were you using for your projections? I'm using 7% to be extra conservative for my projections

[@SammifromMiami]

@@thoryan3057 8% Projections and plans are one thing, but dealing with your emotions when the markets puke and staying on track are very tough things to do. Know thy self!

[@thoryan3057]

@@SammifromMiami I have plans in place to mitigate emotional decision making. On one hand I know myself well but on the other hand I haven't actually experienced a market downswing with my own money before. I'm hoping that my plans are enough for that.

[@SammifromMiami]

@@thoryan3057 good luck to you. And remember, even if you don't hit the number you hope for, you will be better off than not having started.

[@thoryan3057]

@@SammifromMiami Thanks! :)

[@JR-oi2cf]

The money guy formula for people younger then 40 is spot on for me. 23 years old at $43k net worth. Formula calculates $$41,706

[@mikeparente2505]

Hey guys, great content! I just subscribed. Keep up the great work and info

[@Xyrutano]

In your housing cost at 7:50 do you guys include home insurance, property tax, interest rate, utility bills ? The reason I ask is because my family members may have a house within 3x their income but the monthly payments due to all those aspects cause the amount spent per month to be like 55% of their take home

[@alextemus]

@The Money Guy Show A couple significant issues with the math at 6:22 comparing median income and house price is that 1) the majority of households that I've seen have two working spouses who pay for the mortgage and living expenses, so comparing 1 persons income to 1 house isn't accurate, and 2) people don't buy a house as soon as they get a job, this could help or hinder this ratio because maybe people buy houses before they reach their own median lifetime income, but regardless, this is not an effective way to analyze these values.

[@buttmanjenkins3972]

love your show, its like a more realistic version of Ramsey"s teachings

[@michaelwoods4495]

When I saw how much people save, at age 73 I've learned that when the kids got off the payroll, money just piled up. Until then it was much harder. A breakdown by age would be revealing.

[@anniealexander9616]

Exactly! My childless friends think I'm doing something wrong. Reality is I've been raising a family for the past 30 years. Baby girl is 17 years old today. I'm piling up money just because I only have 1 child left to support. Grateful for my family!

[@ahumm8280]

I go to sleep to these podcasts! And I love it!

[@MoneyGuyShow]

Not sure how to take that...

[@ahumm8280]

Please take it as only in the most constructive way! I like and appreciate the conversations and content. I would not be subscribed here on youtube and Iheart radio if I didn't!

[@genxx2724]

I’d like to do the same, but the harsh music would wake me up between every segment. Listening as you go to sleep and while you sleep gets the lessons into your consciousness.

[@jackjackson7170]

How can you sleep when Bo is super excited?

[@ahumm8280]

​@@jackjackson7170😂

[@WoodUCreate]

Getting to point 1, the mistake you're making is that although the median price of a home might be $329K, that in no way reflects the down payment on that home, or other incentives to purchase it. I think the factor you're looking to work is 3x your monthly income against your home+insurance. That takes into consideration your balance and affordability of the home.

[@CalmerThanYouAre1]

Well done guys! This is definitely one of your best episodes and on my personal top 10 list for personal finance videos. Book marking this one to show my family, friends and kids! For what it's worth, I'd encourage everyone to measure your progress against hitting your FI target, not accumulating wealth. Like they said in the video, there are a lot of depressed CEOs and other high paid individuals out there. Once you're confident you're going to hit your FI target (plus some cushion) in the amount of time you desire, consider focusing more on enriching your family's life in the present with what's left over. Whether that means using the money for more/better family vacations, a home in a nicer/safer community, more comfortable vehicles, or even saving/investing more to retire earlier and open up more time for charity/family/exploring the world. Working 40 years in a high stress job to retire with $10M, a family you don't know and an expensive house you're never in seems pretty pointless...

[@Swartberry007]

What is FI ?

[@CalmerThanYouAre1]

@@Swartberry007 Financial Independence. Cross over point where the income from your investments can cover your essential expenses for the rest of your life.

[@darleneatkinson6730]

Hi Money guy show, great video, I discover I got to love who I am to truly enjoy others. More than just reasons. But feel good about being alive and see goodness in the world daily. That my Abundance mind set. No I did not get all those steps right but I discover God love live in me and if I can love others that good enough. Thank You for great video about the wealth journey. I feel wealthy inside my mind. It might not appear that way to others. Still enjoy this video. Oh, I retired 2015 year.

[@TheFame5000]

This show is inspiring. These guys make me feel financial control is in my control.

[@TheFame5000]

@ynwa 96 You have a point there, the twenty somethings have a big leg up. But something is better then nothing, and if you start now you will have a small nest egg when you’re older.

[@alk672]

It's shocking how much more money one has all of a sudden the moment they realize what that one thing that they value is and stop spending on all the other things.

[@matthewwitte3832]

Question: Do you handle a married/non married couple in a similar fashion? Combined Net worth>=Age*Combined Income/(10+Difference in Age until 40)? This being for an Average Accumulator of Wealth. Or should this be doubled for an AAW since there are at least two people? What if one spouse is non working? The outlook would be favorable for the working spouse, but when looking at two people this may be light to be "Average" since this is supporting two people. Or am I thinking about too far beyond just the accumulation stage?

[@GenZFinance]

yes love the adjusted formula y'all provided! When I did the original formula the first time, it told me I should have $138,000 net-worth (at 23!!). The re-worked formula now tells me to have $51,100. I'm a bit short of that right now ($37k), but I think I can make it there before I turn 24. Now I've gotta work on getting to the PAW number next 😓😓

[@FinancialFiguresandFacts]

The financial taudry tandem, way to go fellas, if i could id give yall double thumbs up!!

[@jerryserrano5062]

Great info,but what about double dipping? Retiring and going back and getting two incomes.

[@BrianSchoedel]

Great takeaways and thanks for your insights!

[@GaborPetoAndroid]

Thank you for this valuable message!

[@benjaminsemmes]

Wonderful show, perfect timing and topic for the Thanksgiving Holiday. Thank you Brian and Bo!

[@Joe-bm4wx]

Agree with all except for term life. Whole life is much better to buy as young as possible.

[@Theblondebass1]

So question: for the calculation of the millionaire, is that how much you should be currently worth or how much should be saved for that year?

[@valandrobgood7184]

50:00 should I do this formula for myself AND my husband and then add the two together as my goal? Or is it just one number for the two of us because the plan is we are living under the same roof etc for life? Basically, if there are two of us, is it this number times 2 or just 1?

[@rickycastles1510]

I would suggest that comparing the median household income to the median home sales price doesn't quite do a fair comparison for the ratio because many of the lower income earners in the US are renters, not homeowners. Those with the means to buy a home may not be reaching too badly beyond the 3X multiple.

[@marciethefruitysmoothie2.028]

The last 10 mins of the podcast is golden. It is true that living in abundance shouldn't just reflect your bank account, it should also include your growth as a person. The journey and self reflection when you arrived is just as important if not more significant than the goal.👍

[@ADobbin1]

The problem of buying more house than you can afford is the price of houses is going up 20%+ a year while wages are going up 1% or less every year on average. Its not a choice if you want a home. Personally I will never buy a new car. They lose almost half the value the second it rolls off the lot. You can get really good used cars only a year or two old for thousands less than the new one. The car I have now I bought a year old with the balance of a 7 year warranty and for 6 grand less than the same model brand new. Then I paid it off 3 years later instead of the 72 month thing. I imagine I pissed off the bank.

[@xJayhawkFANx]

I only invest 10% into my company Roth... But my company matches another 10% for a total of 20%... Do I need to increase my personal contribution to 20-25% to create a total of 30-35%?

[@lisajackson3743]

Must watch to the end. Wonderful, thank you!

[@stevenspencer306]

I'm wondering if you have any alternate formulas for Average Accumulator of Wealth that take into account large wage increases. My problem with your formula is that my income increased by a factor of 6 between when I turned 30 to 35. I'm still under 40. Ever since I hit 30 I've been saving/investing 50% or more of my income, but I still haven't hit your targets.

[@ckersh74]

Be patient. Let it compound for 10 years. It will come to you.

[@herbythechef7624]

Oh ya you just gotta be patient man if you are investing a lot it will really grow over a decade

[@Zaerki]

I'm definitely itching for the Tesla, it's so hard to ignore it. Even the 25000 Tesla will probably be outside of my range, but it's going to be so tempting when it comes out.

[@JoDonn]

Cover all of your bases that they talked about in the beginning stages, and it will feel a lot better when you’re not faking it; Driving YOUR Tesla with a smile on your face.

[@Zaerki]

@@JoDonn Yeah I know. In 3 years I should be on level 3, but buying the Tesla is still going to be outside of my budget, so I'm just going to have to live without it.

[@CalmerThanYouAre1]

@Chris: have you considered getting a second job or a side hustle? The best way to speed up the process is to find ways to earn more income. You can only cut back on expenses so much, but you can earn an unlimited amount of money! Lots of free resources on KZbin teaching tech skills like coding. Cyber security is very in demand right now as well and the certs are very affordable. Lots of options...

[@Zaerki]

@@CalmerThanYouAre1 Yeah I already have one, but that money goes to investments lol

[@dirtysanchez4753]

I want a tesla.but I dont have electric at my house.😳😳

[@Pandorash8]

Wonderful points about abundance 💕

[@5x106]

I saved 48% of my income this year, tax deferred. Another 15% after tax

[@MTB-ENG]

Sounds like 40k/year maxing 401k and Roth IRA... Well done! 👍

[@5x106]

@@MTB-ENG thanks Bryce, with deferred comp, and employer match , it came to $120k pre tax (and that grew 27% throughout the year)

[@MTB-ENG]

@@5x106 27% increase is amazing! You're on the right path 👊 Congratulations 🎉

[@Ethernet480]

@@5x106 how do you save $120 pretax? Between HSA and 401k…limit is $27,800

[@5x106]

@@Ethernet480 deferred compensation option, no limit

[@moinvest7127]

Excellent episode, thanks!

[@Kornheiser10]

A lot of Morgan Housel in your words, especially about freedom

[@michaelwoods4495]

"You can't eat housing equity" but you can plant a garden!

[@FS-lw6sq]

At $450K in total wealth and zero debt (this includes no mortgage, no car payments, and no credit cards)...these great advises still make me feel short at 50yrs/old. Unfortunately, no CFP ever mentions military pensions that over its natural life can add into a few million dollars in total comp (calculating to 85yrs/old and 2.5% inflation). I hope to run into a CFP that understands military pension as one of the biggest annuities anyone can start collecting at a younger age.

[@genxx2724]

I know a financial planner who understands the value of a defined benefit pension very well and taught me how to calculate the value.

[@bradendavis5640]

Worked with an advisor at Edward Jones who came from military and specializes in military veterans. Let me know if you want his info. I’m not at Jones anymore but he was a trustworthy guy who I have some of my money with now.

[@s977382]

It seems to me the median household income versus the median house multiplier is skewed as it assumes everybody is buying their house now, rather than having bought at (probably) a lower price some number of years ago. I don’t know how much it’s skewed, but it’s probably lower than the 4.8x. Nevertheless, it’s a good point and it’s still probably too high.

[@nataliecat98nc]

Do I need life insurance if I don't have any debt or family? I currently live with my partner but he isn't financially dependent on me in any way, although we do split things equally.

[@benwhitnell]

No need for life insurance if you have no dependents.

[@johnford5568]

Very good, thanks. The Lord didn't mention this due to its rarity...Luke 12:15 - And He said to them, “Take heed and beware of covetousness, for one’s life does not consist in the abundance of the things he possesses.”

[@DonesdeMotivacion]

Greetings from 2022. I believe I'm at level 2 but Inflation it's eating every single opportunity to invest and re-invest that I have.

[@Zlacher12]

As a car sales person I see people build equity even with 72 month loans (take the 30 year mortgage, not the 15?). Mileage and interest are the killers for most people's equity. You can always pay ahead on a 72 month loan. How fast do you have to pay off the car doing 20k miles/ year with a 13% interest rate?

[@drehardin]

Great Info. I never knew the rules on 20dp/3yr for car loans etc....

[@robertryan3490]

Does it ever make sense to hold on to your army of dollars and lease a car? Possibly letting stock dividends pay the lease payment?

[@user-ee5om8wy7u]

I got some of the basics at least😊. Got no any kind of debt, got emergency cushion, got used to living below my means and got ROTH IRA savings. However, my income is super law. I also got the best "life insurance" ever, which costs me ZERO DOLLARS - and it is called "staying single and child free". Just by not having children I save a ton of time, energy, money and peace. And I won't make any children unless I get a sufficient surplus of time/energy/money/space to share with someone else (which I don't have anyway). And yes - I budget not only my money, but my time/schedule and energy levels. Based on my budgets I cannot afford to have children. This video made me feel not so bad about myself.

[@AllTheArtsy]

Being childfree and unmarried is the biggest savings hack 😂😂😂

[@theroadtofreedom8410]

Just purchased the forever home. Big family, big house. We have spent five years in a home we outgrew by year two. We have some money in the bank, but not a ton. I have a truck note and now a mortgage. All I can say is I’m going to work my butt off for the next five years to pay this all down as much as I can.

[@skylinec83]

How does the PAW/AAW/UAW formula apply to couples? Do you add up the ages of both people and their incomes / (combined ages x combined income)/10?

[@TB-rx1ue]

Use the age of the oldest partner... that’s likely when you will retire unless you don’t plan on retiring at the same time

[@onsilverlining]

I was one of the 1 in 3, but it allowed me to reduce my payment, insurance and to pay it off quicker and get into a more reliable vehicle. I certainly won't do that again though.

[@GarrettLibertowski]

Great show guys!

[@Ethernet480]

I bought 3x on my house 5 years ago. Now with my new income and equity, what I owe is only 2x

[@timelston4260]

It's good the tenth commandment, "Keep Eternity in Mind," is the last one, serving more or less as an afterthought to the previous nine, since ideas about eternity often become justifications for neglecting the life we have now and the responsibilities we have to it. At their worst, beliefs in eternal life cause people to deny the value of this life on its own terms. But the life we are living now is the only one we know for sure we get, so focusing on making it as good as possible is a sound approach. If we interpret "eternal life" as the memories we leave behind with the family and friends who survive us, then the tenth commandment is tantamount to leaving a testament in the minds of those who knew us to how well we lived the other nine.

[@joekuul8769]

On the other hand, if you have: 1) A certain level of investment dollars in a brokerage account where you COULD pay off your credit card debt in full, and, 2) Excellent credit where you get balance transfer offers at 0% for 12-18 months, then 3) Why not take the 3-4% hit for the balance transfer and let the banks finance your investment into an index fund earning an average of 10% per year? This is exactly the same concept as continuing to pay a low-interest rate mortgage, allowing you to keep your money invested at 10% on average, instead of paying off your house early.

[@Kl13457]

Best financial podcast on YT! Keep killing it guys 👍

[@DebtFreeDad]

See because of the short clips I circled back to watch. 💪🏾

[@erinaustin9968]

Not everyone is buying a new house today. Many of those “average” wage earners bought a house some time ago when the average new house price was less.

[@joekuul8769]

I don't like Target Date funds. They mostly underperform comparable Index funds, and usually have higher fees. Your mileage--and risk tolerance--may vary, as the saying sort of goes, so do your own due diligence, as The Money Show fellas say.

[@marketslice5030]

Great show! Earned a new subscriber! 😃

[@IrisP989]

Are you referring to buying a first house when you say that you can afford 3 times your salary? I know someone that makes $165K and was approved to buy his second house for $781K and bought the house. That’s more than 3 times (the first house is a rental).

[@theAppleWizz]

Honestly if you have the money and you're not putting in $1000+ in investment. You're not even trying.

[@theAppleWizz]

@@MrNGTfan123 yep, I do more like 2500 a month. But 1000 is good.

[@herbythechef7624]

Ive just started budgeting well and i managed to start putting $1000 into an index etf each month. Making just over 4k a month so about 25% of my income. I feel really proud about it

[@nataliearciniega2103]

Thats what about 40% of my income but its what ive been doing 😀 just not investing but im starting now that im learning more.

[@theAppleWizz]

@@nataliearciniega2103 awesome 👏 I know it’s hard but try to increase your income. It make investing more fun because you cover all your basic needs without worrying about it.

[@nataliearciniega2103]

@@theAppleWizz im good at budgeting and still live at home so saving that much has been easy for me :) the goal is definitely to increase income. So much more motivated now!

[@scottjenkins2306]

What about a discussion on critical mass, what is means, things to look out for, and how you know when you get there? Thanks

[@FrankHunt4]

Would you define crit mass as the point where your money is growing faster than your current income?

[@dheezknutz]

What if I bought a trans am at 17 and another one at 18 and another one at 21?

[@ryanmuchard3990]

Hey Brian and Bo. Love the show. Been listening for about a year! Quick question about buying a car. I'm in the market for a new WRX, and am trying to apply the 20/3/8 rule. I can put 20% down no problem, but paying it off in 3 years seems quick. A little background on me, I am 26, debt free, and have just shy of $100k saved up between my cash and investment accounts. I save 65% of my income and max my Roth 401(k) and Roth IRA. I could pay off the car in 3 years but then it might be tough to max the retirement accounts. The interest rate on a 72 month loan is 2.9%. I ran the numbers and if I invest the difference in monthly payments going from a 36 month (@ .9%) to 72 month (@ 2.9%) loan, I end up with about $28k more by the end of the loan after I subtract the increase in interest from the investment value. Anything I'm missing here? It seems like stretching the loan out for a lower monthly payment and investing the difference is the optimal decision. Thanks!

[@JoDonn]

Sounds like you have your ducks in a row. You’re above average and you did the homework/math, do what you want as long as you keep your foot on the gas and continue doing what you’re doing.

[@ryanmuchard3990]

@@JoDonn Thanks for the feedback and kind words!

[@leeklinglesmith3427]

@@ryanmuchard3990 Ryan, a car is a depreciating asset I would take their advice and pay it off in three year. Take advantage of their wisdom!

[@ryanmuchard3990]

@@leeklinglesmith3427 but why would I rush to pay it off to save 2% when I can invest and make 9%?

[@ryanmuchard3990]

@@theadventuresofarenaissancman that doesnt really answer my question though. It is a liability but a necessary one. I need a car and I just don't see the point in rushing to pay it off to save about $1800 when I can pay the minimum and invest the difference to make $30k over 6 years.

[@nicolekrantz5716]

Is there such a thing as saving TOO MUCH in the 20s? I’m saving about 75% of my income and living on the bare essentials. I know my dollars are as powerful as they will ever be but I’m worried about creating a habit of being a Scrooge McDuck type. Any advice is appreciated :)

[@jasontangsh]

Join the live chat. I recall they said you can hyperaccumulate but you should also enjoy life because there's more to life than just saving. Maybe spend some money on experiences with your loved ones :)

[@jeffreymcdonald8723]

If you are a religious person there is something in proverbs that talks about that.

[@ghjong001]

There is a point where you're no longer being practical, and are just being miserly - you have to strike a balance. The best way to do it is to write down and your monthly expenses and your long & medium term goals, and then evaluate one by one to see what the right balance is. If extra spending won't actually make you happy, then you're fine; if you find you're making yourself unhappy or unhealthy, then it's time to re-evaluate. Also, remember that your income tends to go up very rapidly in your 20s; you can make the decision to split your pay raises between them, so that you're both saving more and improving your standard of living.

[@matthewtrimble7502]

There probably is. But it’s much more about the attitude with which you’re saving. I’m at around 50% right now, but I also give a significant portion of my income and I buy things I want. There’s an equilibrium to be found in there.

[@timelston4260]

Consider yourself to be very fortunate to have this question at your age. Most people don't realize the value of investing until the question doesn't apply to them any more. As to practical advice, maybe put 5% in a Frivolity Account and go wild with it.

[@danielmuzzarelli4740]

Don't think just about monthly payments...but also, worry about your monthly housing payment. I get that your house is an exception, just funny to see the ideas juxtaposed.

[@investingwithedwin6578]

Content always filled with value thanks guys!!!!

[@devmoudgill2903]

you guys are dope for real

[@MK-_-Rob]

Real Uncle Iroh Energy at 58:35

[@tinorosmg9374]

God bless you guys for the content you are putting out!

[@LordJon0SRS]

I am 24 and I am so close to the AAW adjustment

[@caliorbustarika3310]

I am 20 and I am negative NW

[@overcomer4226]

A show about self employed people would be nice. I really wish the government would give self employed people some benefits for the risk that we take for not having a company contribute to A401K for us

[@esqu1re]

Love the show, but your median salary vs median home price comparison is flawed. You can't use those two figures to say the average american is paying more than the recommended percentage for a home (even if it's true). Many of the bottom wage earners are not buying homes. Arguably, the bottom 1/4 wage earners aren't buying homes. I think it's more appropriate to compare how much the household that is buying the median home is making.

[@joshbreckling9084]

I'm making 60 k a year but have no rent and very little expenses but I have a $600 car payment 🙃 but I am saving about 1500 a month if not more

[@euenfheiejrj]

Is it 25 percent pre or post tax?

[@helomech1973]

I am 47 and almost all my investments are in my 401k. Can yall still help me with my money inside of a 401k? I am planning on retiring by 55 at the latest, hopefully 53. I do have some other investments, I am currently maxing out my 401k, and putting 1000 every two weeks into a charles swab, and ameritrade account.

[@eddiemalvin]

I can't imagine purchasing a house that is 3x of our annual household income. Our current primary residence is worth 0.50 our household income and it's more than we'll ever need. We reserve the other 2.5x for investment properties.

[@ianmarcusiu8703]

Good for you… most household incomes aren’t above 400k like yours, Eddie

[@herbythechef7624]

Was this just a flex on how much wealthier you are than the average american household?

[@eddiemalvin]

@@herbythechef7624 No, it a demonstration of how "frugal" we are when it comes to our personal residence. Just because we can afford a bigger home, doesn't mean we should.

[@mudge40]

Picking 85-2000 is cherry picking the best years in market history, I think it underscores a big problem we now have which is that people see "investing" in stocks as the same as saving, and not as speculative, becuase "stocks for the long haul" means you *won't" lose money (if you wait long enough). Maybe, but then again, earnings yields are so low, it's difficult to believe that you will make positive speed over ground, it is going to be tough to avoid losing money, there are times where preserving capital is all you can do.

[@ammarnapata2193]

Love these type of videos. Keep it coming